Identify the Correct Universe of Buyers STEP THREE: Not contacting enough or contacting the wrong, buyers is the easiest way for sellers to leave large amounts of money on the table. You have to cast a wide net that will catch the “outlier” valuation. Part of the value that your investment banker brings to the table is the relationships that he or she maintains. There are over 6,000 private equity (or financial buyers) and your investment banker will know those that are interested in your size business and in your industry. One of the reasons to choose an investment banker in your industry is because of the knowledge of strategic buyers they will have. Strategic buyers can be difficult to contact, so having an investment banker experienced in your industry is critically important. PRO TIP Sellers often think they know who will buy their business. There is usually a group of potential buyers that have been contacting the owner for some time. The groups that have reached out to the business owner are very rarely the ultimate buyers when a wide net is cast. In our experience sellers do not know who the buyer of their business will be.
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